BUY TO LET APPETITE SHOWS NO SIGN OF WANING

If you read some of the more sensational media outlets, you would believe that the desire to become a residential landlord has all but died out.  So it was refreshing to see nearly 100 prospective Buy To Let investors come to our recent Roadshow; clearly there is still an appetite for this kind of investment, and with good reason.

It is true that some of those attending expressed concerns about recent government measures designed to dampen the Buy To Let sector.  But the mere fact that these people came along to the roadshow demonstrates that people are starting to see through the ‘shock, horror’ stories and realise that residential letting still offers great returns – albeit that new entrants to the market have to tread a little more carefully than they might once have done.

Partly this is driven by continuing poor returns on other types of investment, as the base rate remains at a very low level.  With all the uncertainties about Brexit, it is highly unlikely that rates will return to their long-term average for many years to come, so those with cash to invest will need to be more savvy when seeking better returns.

An initial three per cent stamp duty hit might put off the casual, opportunistic investor, but those looking to the long term can see that this one-off cost is soon eclipsed by the rental yields and potential capital growth which Buy To Let still offers.

That is why so many people turned up to our roadshow, and why we continue to welcome first-time prospective landlords into our offices almost every day.

What new landlords are coming to realise is that entering the market nowadays requires a more informed and business-like approach.  There are certainly more regulatory and tax pitfalls to trap the unwary, which is why getting expert advice is so important. 

At the roadshow, alongside experts from Arnolds Keys, speakers from financial advisers The Mortgage Advice bureau, accountants M&A partners and solicitors Cozens Hardy all shared their knowledge.  There were lots of questions, showing a healthy appetite for good quality advice, so crucial to succeeding in a market which is rather less straightforward than it might once have been.

They say it’s an ill wind which blows nobody any good, and the good news for Buy To Let investors is that residential sales have slowed a little, whether due to seasonal factors or Brexit uncertainties, or a combination of both.  That does mean that there is value to be had in the market for the investment buyer, value which could more than offset any extra costs incurred due to government measures.

We are planning another Buy To Let Roadshow in the new year.  If you would like to register your interest and receive and invitation, please send an email to phil.cooper@arnoldskeys.com